Annual report pursuant to Section 13 and 15(d)

Business segments

v3.5.0.2
Business segments
 12 Months Ended
Sep. 30, 2016
Segment Reporting [Abstract]  
Business segments
Business segments
We have three business segments, Health Services, U.S. Federal Services and Human Services. These segments reflect the way in which we organize and manage the business and is consistent with the manner in which our Chief Executive Officer operates and reviews the results of the business.
Expenses which are not specifically included in the segments are included in other categories, including amortization of intangible assets, the direct costs of acquisitions and the gain on sale of the K-12 Education business. These costs are excluded from measuring each segment's operating performance.
The results of these segments for the three years ended September 30, 2016 are shown below (in thousands).
 
Year ended September 30,
 
2016
 
2015
 
2014
Revenue:
 

 
 

 
 

Health Services
$
1,298,304

 
$
1,109,238

 
$
906,650

U.S. Federal Services
591,728

 
502,484

 
341,840

Human Services
513,328

 
488,099

 
452,422

Total
$
2,403,360

 
$
2,099,821

 
$
1,700,912

Gross Profit:
 

 
 

 
 

Health Services
$
292,181

 
$
254,108

 
$
213,728

U.S. Federal Services
138,168

 
118,646

 
110,793

Human Services
131,842

 
139,963

 
127,602

Total
$
562,191

 
$
512,717

 
$
452,123

Selling, general and administrative expense:
 

 
 

 
 

Health Services
$
107,155

 
$
99,815

 
$
98,172

U.S. Federal Services
74,792

 
59,252

 
47,695

Human Services
84,157

 
79,719

 
74,444

Other
2,155

 
6

 
614

Total
$
268,259

 
$
238,792

 
$
220,925

Operating income:
 

 
 

 
 

Health Services
$
185,026

 
$
154,293

 
$
115,556

U.S. Federal Services
63,376

 
59,394

 
63,098

Human Services
47,685

 
60,244

 
53,158

Amortization of intangible assets
(13,377
)
 
(9,348
)
 
(5,890
)
Acquisition-related expenses
(832
)
 
(4,745
)
 
—

Gain on sale of a business
6,880

 
—

 
—

Other
(2,155
)
 
(6
)
 
(614
)
Total
$
286,603

 
$
259,832

 
$
225,308

Operating income as a percentage of revenue:
 
 
 
 
 
Health Services
14.3
%
 
13.9
%
 
12.7
%
U.S. Federal Services
10.7
%
 
11.8
%
 
18.5
%
Human Services
9.3
%
 
12.3
%
 
11.7
%
Total
11.9
%
 
12.4
%
 
13.2
%
Depreciation and amortization:
 

 
 

 
 

Health Services
$
31,916

 
$
27,694

 
$
23,994

U.S. Federal Services
9,953

 
10,363

 
9,557

Human Services
16,535

 
8,792

 
9,227

Total
$
58,404

 
$
46,849

 
$
42,778


Acquisition-related expenses are costs directly incurred from the purchases of Ascend Management Innovations, LLC (Ascend) and Assessments Australia in 2016 and Acentia, LLC (Acentia) and Remploy in 2015, as well as any unsuccessful transactions.
We principally operate in the U.S., the U.K., Australia, Canada and Saudi Arabia.
Our revenue was distributed as follows (in thousands):
 
Year ended September 30,
 
2016
 
2015
 
2014
United States
$
1,721,261

 
$
1,559,769

 
$
1,306,026

United Kingdom
384,649

 
267,702

 
128,363

Australia
200,539

 
178,167

 
170,727

Rest of World
96,911

 
94,183

 
95,796

Total
$
2,403,360

 
$
2,099,821

 
$
1,700,912


Identifiable assets for the segments are shown below (in thousands):
 
Year Ended
September 30,
 
2016
 
2015
Health Services
$
543,361

 
$
482,560

U.S. Federal Services
440,006

 
441,521

Human Services
153,141

 
186,406

Corporate/Other
212,311

 
161,071

Total
$
1,348,819

 
$
1,271,558


Our long-lived assets, consisting of property and equipment, capitalized software costs and deferred compensation plan assets, were distributed as follows (in thousands):
 
Year Ended
September 30,
 
2016
 
2015
United States
$
118,751

 
$
120,130

Australia
38,852

 
33,591

Canada
16,209

 
19,720

United Kingdom
11,086

 
16,141

Rest of World
117

 
41

Total
$
185,015

 
$
189,623